On Friday, a group of 18 House Republicans issued a letter to Twitter (TWTR.N) board members requesting that any records and materials relevant to Tesla Chief Executive Elon Musk’s plan to buy Twitter be preserved, laying the framework for a possible probe.
“As Congress continues to examine Big Tech and how to best protect Americans’ free speech rights, this letter serves as a formal request that you preserve all records and materials relating to Musk’s offer to purchase Twitter, including Twitter’s consideration and response to this offer, and Twitter’s evaluation of its shareholder interests with respect to Musk’s offer,” according to the letter signed by the top Republican on the House Judiciary Committee, Jim Jordan, and others on the committee.
The order to safeguard documents clearly implies Jordan intends to investigate Twitter if Musk’s offer is rejected and Republicans retake the House in November’s midterm elections. The letter made no mention of an investigation.
Jordan recently stated on Fox Business that he hoped Musk would be successful in purchasing Twitter since social media platforms are “the public square today.”
Jordan and other Republicans have chastised Twitter for removing former President Donald Trump and other prominent conservatives from the platform.
Following the assault of the US Capitol, Twitter blocked Trump’s account due to the possibility of additional instigation of violence.
The Twitter board’s “reactions to Elon Musk’s attempt to acquire Twitter, and outsider resistance to Musk’s participation in Twitter’s future are alarming,” according to the letter, which was also signed by senior Republicans on Judiciary subcommittees.
According to a statement with US authorities, Musk claimed on Thursday that he has secured $46.5 billion in debt and equity funding to purchase Twitter and is considering putting his bid straight to shareholders.
In response to his offer, Twitter has implemented a “poison pill” to prevent him. On Friday, Twitter declined to comment on the letter.
The poison pill strategy was developed by the New York-based law firm Wachtell, Lipton, Rosen, and Katz in the 1980s. The term stems from the poison pills that spies used to avoid being interrogated by their enemy if they were caught. It was created to prohibit an acquiring business from purchasing a majority stake in a potential target or directly negotiating with shareholders at a period when takeovers were becoming increasingly widespread.
When a corporation is threatened with a hostile takeover, it may employ the poison pill method to make itself less appealing to the possible buyer. A poison pill, as the name implies, is anything that is difficult to take or accept. A poison pill can be used by a corporation facing an undesirable takeover to make its shares unappealing to the acquiring firm or individual. Poison pills also boost the cost of purchases greatly and offer strong disincentives to entirely prohibit such attempts.
